Posting
Posting is the process of transferring journal entries from the general journal to the individual accounts in the general ledger. It's the step that takes a recorded transaction and distributes it to the correct accounts — so your accounts receivable, cash, revenue, and other ledger accounts all ref
Posting Definition
Posting is the process of transferring journal entries from the general journal to the individual accounts in the general ledger. It's the step that takes a recorded transaction and distributes it to the correct accounts — so your accounts receivable, cash, revenue, and other ledger accounts all reflect the latest activity. In modern accounting software, posting happens automatically.
Posting in Practice — Example
A web design agency invoices a client $5,000 for a completed project. The bookkeeper records a journal entry: debit accounts receivable $5,000, credit revenue $5,000. When this entry is "posted," the accounts receivable ledger increases by $5,000 and the revenue ledger increases by $5,000. Each account now reflects the transaction. In QuickBooks, this happens the moment you create the invoice — no manual posting required.
Why Posting Matters for Your Books
Posting is the bridge between recording a transaction and having it appear in your financial statements. Without posting, transactions would pile up in a journal but never flow into individual accounts — making reports like the balance sheet and income statement incomplete.
Understanding posting helps you trace transactions through your accounting system. If a number on your P&L doesn't look right, you can trace it back from the ledger account to the original journal entry. This audit trail is fundamental to accurate bookkeeping.
While modern software automates posting, the concept still matters for accountants reviewing your books. They'll reference "posted" vs. "unposted" entries, and understanding the distinction helps you communicate clearly with your accountant or bookkeeper.
How Posting Shows Up in QuickBooks
In QuickBooks Online, posting is automatic — every transaction you enter (invoice, bill, expense, journal entry) is immediately posted to the relevant ledger accounts. There's no separate posting step. You can see the result by running the General Ledger report or Transaction Detail by Account report, which shows every posted entry affecting a specific account.
Common Mistakes
FAQ
Q: Do I need to manually post entries in QuickBooks? A: No. QBO automatically posts every transaction when you save it. Manual posting is a concept from manual or legacy accounting systems.
Q: What's the difference between a journal entry and a posted entry? A: A journal entry is the original record of a transaction. Once it's posted (transferred to the ledger accounts), it becomes a posted entry. In QBO, this happens simultaneously — there's no delay.
Related Terms
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